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Dear Clients and Friends,
As we officially enter the Summer Season, the number of signed contracts in June dipped a bit from the prior month, though a slightly more significant contraction in the number of new listings ultimately led to an increase in the Market Pulse.
While there is less pending contract volume than in previous years, we are effectuating transactions and note a narrowing in the spread between buyers’ and sellers’ value perceptions for properties that are trading. Underscoring this point, ~27% of the deals that went into contract in 2Q24 had first undergone price reductions, versus the ~35% average of the prior four quarters. For sellers, this means that accurately and strategically pricing your units is critical. At the same time, we are starting to see fatigue among those would-be buyers (some of whom are also sellers) who have been waiting on the sidelines for nearly 2.5 years for interest rates to decline and no longer wish to postpone their moves. In fact, June was the first time in two years that the number of financed sales increased YoY more than all cash deals.
The luxury market continued its robust trajectory with 139 (up from 118 in May) contracts signed for properties above $4 million. Interestingly, 2Q24 contracts signed for $4M and above were 8% lower YoY, while ultraluxury $10M+ sales increased 7% - further confirming NYC’s draw as a trophy property location.
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